Campaign contributions from corporate PACs

Conclusion This paper provides a theoretical model of the optimal level of campaign contributions by business firms. The model shows that market structure variables are key determinants of the level of campaign contributions. Furthermore, the empirical results support the model's assertion that a reduction in government involvement in an industry could substantially decrease the level of campaign contributions from firms in that industry. Also, reductions in industry concentration through antitrust enforcement could, in fact, increase the level of campaign contributions. This research was funded, in part, by a Villanova University Summer Research Grant. All errors and omissions are the authors.